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ACCA Applied Knowledge · Business and Technology · Financial systems and technology

Which of the following best describes the main purpose of a management information system (MIS)?

A management information system provides managers with summarised, relevant information drawn from internal and external sources, so they can plan, control and make decisions. It supports human judgement rather than replacing it, and it differs from a transaction processing system, which simply records day-to-day transactions.

  1. ATo record every transaction in the business as it happens and update the ledgers automatically
  2. BTo provide managers with summarised, relevant information from internal and external sources to support planning, control and decision-makingCorrect
  3. CTo replace managers' judgement with automated decisions in all areas of the business

Explanation

An MIS collects and processes data into information that helps managers plan, control and decide. Option A describes a transaction processing system, not an MIS. Option C is wrong because an MIS supports judgement and does not replace it.

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